Global BPO Market Forecast: 2014-2018 Market Forecast Report Abstract June 2014 By John Willmott BPO Market Development program NelsonHall 233 pages research.nelsonhall.com
Who Is This Report For? NelsonHall s Global BPO Market Forecast: 2014-2018 report is a comprehensive market forecast report designed for: Sourcing managers monitoring the business process outsourcing (BPO) industry and identifying vendor suitability for shortlists and RFPs Executives seeking assistance in identifying levels of BPO vendor presence by service line and geography Vendor marketing, sales and business managers looking to benchmark themselves against their peers Financial analysts and investors specializing in the support services sector. Scope of the Report The report provides a forecast for the global business process outsourcing market overall and by geography and by service line. It covers the following: The BPO market size for 2013 and the forecast for the BPO market through 2014 to 2018? The BPO market size and forecast for North America, specifically covering the U.S. and Canada, EMEA, specifically covering U.K., France, Germany, and Italy, Asia Pacific and Latin America The BPO market size and forecast for front-office BPO covering customer management services and document management The BPO market size and forecast for industry-specific or middleoffice BPO covering healthcare payor & insurance, banking, government, pharmaceuticals, supply chain management, telecoms & media, and energy & utilities industry-specific BPO and KPO The BPO market size and forecast for back-office BPO covering HR outsourcing, finance and accounting outsourcing, procurement outsourcing, and legal process outsourcing Identification of the leading vendors together with their revenues and market shares by geography and service line. 2
Key Findings & Highlights NelsonHall s BPO Market Forecast: 2014-2018 consists of 233 pages. The nature of the BPO market is increasingly being impacted by changes in the ways in which organizations address governance and management of processes, both internal and external, and by the increasing maturity of BPO delivery. Essentially both internal service delivery within organizations and outsourced service delivery are moving to much more sophisticated governance models with much higher expectations around service transformation: Firstly organizations are moving beyond individual shared services silos that often appeared to be the internal version of lift and shift to adopt more integrated Global Business Services models Secondly, the BPO vendors have now established target operating models and roadmaps towards process excellence for a wide range of processes and are in a position to offer a much stronger point of view and approach to ongoing process transformation. These changes have a number of implications for the BPO market and BPO market growth. Potentially this includes a much greater emphasis on growing existing client accounts than on new business. Essentially the move to Global Business Services makes it much easier for organizations to adopt mixed-economy models and potentially much easier for vendors to incrementally add new BPO business to existing accounts. A key principle of GBS is that there is a single internal global process owner, with end-to-end accountability and managing internal and thirdparty resources as a single integrated team. This includes involving thirdparties in strategy sessions and not just day-to-day management. Accordingly, although new business remains important, the key driver of growth in the BPO market is now the ability of vendors to demonstrate that they can take clients on a transformational journey. Accordingly, BPO is finally maturing fast. While this has some implications for lower growth rates than were achieved when massive contracts were initially being awarded, there remains huge potential for incremental growth within client organizations both in terms of geographic coverage and process extension and the trend to steadily outsource an increasing proportion of activity continues across each of the back-office, industryspecific, and front-office areas. At the same time, the move to digital business is generating new challenges for organizations in terms of content and channel management, and as in the case of the retail industry this is leading to significantly increased demand for BPO services in support of areas where the organization lacks traditional expertise. This is creating significant new BPO opportunities in content and customer management while at the same time having a downward impact on many areas of traditional document handling and voice customer service. While, the move to mobile and digital business is clearly having a major impact on front-office functions, it is also impacting back-office functions, particularly in areas such as HR where mobile and social media are becoming critical in support of employer brand management and candidate attraction and engagement. Elsewhere within F&A outsourcing and HR outsourcing the move to standardize processes and adopt a single version of the truth across geographies continues, while compliance is of increasing importance in driving BPO engagements across a wide range of industry-specific and horizontal processes. 3
Contents 1. BPO Market Forecast by Region - Global Overview - North America - United States - Canada - EMEA - United Kingdom - France - Germany - Italy - Rest of Continental Europe - Africa and Middle East - Asia Pacific - Latin America 2. BPO Market Forecast by Service Type - BPO Market Overview - Front Office BPO - Middle Office BPO - Back-Office BPO 4
Report Length 233 pages Report Author John Willmott john.willmott@nelson-hall.com 5